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Governance of Lebanon's financial system and BDL in the IMF's crosshairs

In a confidential report reviewed by L'Orient Today, the Bretton Woods institution delivers a rare and damning assessment of the system’s shortcomings, going so far as to recommend a complete overhaul of the Currency and Credit Code.

Governance of Lebanon's financial system and BDL in the IMF's crosshairs

The governor of the BDL, Karim Souhaid, with the members of the parliamentary Finance and Budget Committee, on May 25, 2025. (Credit: NNA)

The debate over the independence of the central bank — which has been temporarily overshadowed by the war and its consequences — is expected to resume on several fronts, notably in Parliament, where the Finance and Budget Committee is set to examine a new draft law amending the law on bank resolution. Approved by the government on April 12, these provisions take into account all of the observations made by the International Monetary Fund (IMF), which considered the law adopted in July 2025 insufficiently compliant with required standards."The debate will resume based on the arguments Karim Souhaid will present before lawmakers," a member of the committee told L’Orient-Le Jour, noting that the governor had already adopted this strategy during last year’s review of the text. While Souhaid reportedly expressed support for most of...
The debate over the independence of the central bank — which has been temporarily overshadowed by the war and its consequences — is expected to resume on several fronts, notably in Parliament, where the Finance and Budget Committee is set to examine a new draft law amending the law on bank resolution. Approved by the government on April 12, these provisions take into account all of the observations made by the International Monetary Fund (IMF), which considered the law adopted in July 2025 insufficiently compliant with required standards."The debate will resume based on the arguments Karim Souhaid will present before lawmakers," a member of the committee told L’Orient-Le Jour, noting that the governor had already adopted this strategy during last year’s review of the text. While Souhaid reportedly expressed support for...
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